Prudent Growth Fund I launched in July of 2021 and is a diversified portfolio of approximately twenty-five retail and multi-family properties. The geographic footprint of the Fund will be in the Southeast and lower Midwest, regions supported by diverse economic drivers such as smart manufacturing, logistics, education, health care, and tourism/retiree growth, as well as favorable state tax environments and lower regulations.

Fund properties generally offer some form of a Value-Add component, which when combined with the existing cash flows, provides a superior risk-return profile when compared with other popular forms of real estate investing.

Retail

These are properties with a diverse tenant mix skewed towards internet-resistant service, restaurant, office, and medical tenants that are supported by nearby demographics, experienced operators and managers, and the post-COVID emphasis on convenience.

Multi-Family

These are multi-tenant properties with staggered lease schedules, allowing for more flexibility and lower tenant concentration risk.  Management is focused on tenant and resident engagement and frequent interactions to increase the likelihood of renewals thus creating an overall “win-win” environment for all involved.

Regardless of the actual property type, most of the Fund’s assets will be characterized as Class B or C+ properties, which are more resilient in a variety of economic cycles as residents and tenants tend to shift up or down in their preferences. These properties also have a limited new supply of construction, and in some cases are in negative supply as assets are improved into Class B+ or A- properties. Once a property is improved and stabilized, it can be held for long-term cash flow over the duration of the Fund, or targeted for sale to another investor, particularly those in need of a 1031 replacement property.